PRODUCTION AND COSTS

Video for module 2

To start off this module, watch the following videos which will give you an introduction to some of the main concepts for this module.  Pay special attention to the discussion about fixed versus variable costs and accounting versus economic profit:

Clifford, J., & Hill. J. (2016). Revenues, profits, and price. CrashCourse.  https://www.youtube.com/watch?v=UWImfFax8Ew

Required reading

1.The following book will give you a relatively simple introduction to the key concepts covered in the module. In addition to the concepts, make sure to go carefully through the numerical examples.  Read Chapter 7 of the following book (use the “Contents” tab to navigate through Sections 7.1, 7.2., and 7.3):

 

Taylor, T. (2014) Principles of Microeconomics. OpenStax College.  http://cnx.org/contents/[email protected]:75YRzeYw@8/Introduction-to-Cost-and-Indus

 

 

 

2.Now go to this slightly more advanced book chapter that will cover the concepts from this module from the point of view of a business manager.  Pay special attention to the tables and numerical examples:

 

Marburger, D. R., & Peterson, R. (2013).  Chapter 4: What your cost accountant can’t measure: The economic theory of production and costs.  Economic Decision Making Using Cost Data: A Manager's Guide. New York, NY: Business Expert Press. [EBSCO eBook Collection.  Note: to find the book enter only the title of the book in the library search engine]